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A blog to help freelancers with taxes - Collective

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LLC

Business Formation

Freelancers Guide to LLCs in Florida – What You Need to Know

Are you a freelancer who’s ready to officially form their own business? That’s great! Just keep in mind…

Jun 3, 2019 · 12 min read
Guides

Single Member LLC Post Formation in Florida

After you’ve filed your articles of organization with the Florida Division of Corporations, your LLC will begin its…

Jun 3, 2019 · 6 min read
Guides

Guide to Single Member LLC Post Entity Formation Setup in Texas

After you’ve filed your certificate of formation with the Texas Secretary of State, your LLC begins its legal…

May 30, 2019 · 7 min read
Business Formation

The Ultimate Guide to Naming an LLC in Texas

Registering your freelance business as a Limited Liability Company (LLC) comes with a host of perks.  But before…

May 30, 2019 · 10 min read
Business Formation

Freelancers Guide to LLCs in Texas – What You Need to Know

Are you a freelancer who’s ready to officially form their own business? That’s great! Just keep in mind…

May 30, 2019 · 12 min read
Business License

Texas Business License: What You Need to Know

For most small businesses, the federal government doesn’t require licenses or permits. But before you break out that…

May 30, 2019 · 5 min read
Blog

Level Up Your Freelance Finances with These Expert Tips

When you first started your business, you probably put some effort into your finances. Maybe you set up…

May 15, 2019 · 5 min read
Business License

Freelancer’s Guide to Getting a Business License for LLCs & S Corps in California

Even if you managed to survive without a business license when you were a sole proprietor, now that…

May 8, 2019 · 3 min read
Blog

Started an LLC? These Are the Most Important Things to Do First

You did it! Your company is officially legit, which means you’re a boss and one step closer to…

Mar 15, 2019 · 11 min read
Blog

Six Pro Tips for Freelancers to Save Big on Taxes

Filing your taxes as a self-employed freelancer might seem like a Y2K level disaster at first. But, once…

Mar 8, 2019 · 13 min read
Blog

How an S Corp Could Save You $5,000 (or more) on Your Freelance Taxes

Are you a full-time freelancer planning to make $80,000 or more this year? Then it’s time to hunker…

Feb 14, 2019 · 11 min read
Blog

12 Mistakes to Avoid When Starting a New Business

Everyone makes mistakes—even the savviest entrepreneurs. And there’s no shame in making mistakes! But, if you’re like us,…

Oct 1, 2018 · 18 min read
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First, tell us about your business

Net profit = Total revenue - total expenses

  1. Find total revenue. Add up all money your business earned from sales of goods or services during the year.
  2. Subtract your expenses. Deduct all business costs like supplies, rent, utilities, software, contractor payments, and loan interest.

An estimate is fine, you don't need exact figures.

W2 employees are people on your payroll

You withhold income tax, Social Security, and Medicare from their paychecks, and they get a W-2 form from you at the end of the year.

Don't count yourself (even if you pay yourself a salary) or 1099 contractors and freelancers.

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We are experts in the unique needs and challenges of self-employed people and know that our confidence gives others confidence, too. Reach out to say hello and join our team.

We are experts in the unique needs and challenges of self-employed people and know that our confidence gives others confidence, too. Reach out to say hello and join our team.

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Collective provides a suite of tools, back-office support, and general information. Our services are not intended as tax, legal, or professional advice.

* Savings estimates reflect the average 2023 federal self-employment (SE) tax savings for Collective members with an S Corp tax election, based on business profits that would've otherwise been subject to SE tax. Actual savings will vary based on individual circumstances.

** Based on data sourced from Shopify blog, QBO Essentials, QBO Live, Gusto, Taxfyle, Intuit "Tax Pro" Research, LegalZoom and JustAnswer.com as of August 2025.

† Individual tax return packages are billed as an annual, one-time add-on fee.

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